Workforce report: Peninsula losing its young adults

Employers concerned about loss of young workers, lack of technical and critical thinking skills in latest study.

(Kaitlin McKeown / Daily…)

May 02, 2014|By Tara Bozick, tbozick@dailypress.com | TidewaterBiz

NEWPORT NEWS — The Greater Peninsula is experiencing an exodus of young adults, entrepreneurism is being neglected and local employers are having problems finding workers with math, critical thinking and problem solving skills.

Those are just a few key take-aways from the annual "Greater Peninsula State of the Workforce Report" and presentation at the Newport News City Center Marriott on Tuesday. The Peninsula Council for Workforce Development will use the data and analysis in its strategic planning.

State Secretary of Commerce and Trade Maurice Jones told a sold-out audience of community and business leaders that workforce development was crucial as companies won't invest in a place unless they can find skilled workers. Even so, Jones said infrastructure like prepared industrial sites and transportation, strong business incentives, targeting the right sectors for growth and creating a climate supportive of entrepreneurs is also essential in growing jobs.

"We need to be friendlier to folks who launch businesses," Jones said. "We are not there right now."

Government-related jobs are not growing on the Peninsula, so it'll be important to focus on high demand, high-wage jobs in the private sector, said Fletcher Mangum of Richmond-based Mangum Economics, which prepared the report. While the economy is slowly improving, the Greater Peninsula is still 11,000 jobs below its pre-recession level in 2007.

The report recommends that the Peninsula Council continue targeting efforts on the region's top sectors: lodging and food services, entertainment and recreation, construction, finance and insurance, health care and manufacturing.

Health-care jobs rose steadily even during the recession, with 14 percent growth from mid-2007 to mid-2013. While manufacturing — the largest local sector and fifth highest paying — initially lost jobs, it grew employment by 3.5 percent in that six-year period, adding 1,054 jobs. The other target sectors lost a collective 7,072 jobs in that time. Other top-performing sectors were: management of companies and enterprises, real estate and rental leasing and health care and social assistance.

A major concern among local employers is the age of the local workforce. From 2000 to 2012, the number of people under age 44 on the Peninsula dropped by 21,396 people, according to the report. The population of adults aged 20-44 dropped by 8 percent in that time while the group 65 and over grew by 26 percent.

"You are experiencing a fairly significant outflow of young adults," Mangum said.

While the exact reasons are unknown, Mangum said the region's tourism, food and entertainment industry could provide "bridge jobs" for youth to acquire the soft skills like problem solving that employers say are lacking. Additionally, the report recommends more effort in getting the word out to young adults about local career and training opportunities.

In particular, employers say they can't find technician-level workers who could earn specific certifications rather than 4-year degrees, Mangum said. Based on the number of training program graduates, the study found worker shortfalls could occur in these high-demand occupations: wholesale and manufacturing, industrial engineers, plumbers, pipefitters, machinists, teacher assistants, sales representatives, logisticians, carpenters and mental health counselors.

The study recommends developing a "fast track" program to help veterans transition to those technical jobs.

"The jobs are here," Mangum said. "The workers aren't."

Besides focusing on the current largest employment sectors, Mangum recommends the Peninsula Council also target potential high-wage "emerging" sectors like under-represented professional, scientific and technical services, which comprises 5.8 of local employment compared to 11 percent in the state. Yet, professional services saw more annual growth in the last period on the Peninsula than the state, or 2.7 percent growth compared to 0.1 percent statewide growth.

The high-wage finance and insurance industry is also under-developed on the Peninsula. As emerging sectors grow, Mangum said the Peninsula will need to fill a gap in these skills: math, management of financial or material resources, systems analysis and speaking.